New Zealand Markets closed

This correction on indices should end soon

Tomasz Wiśniewski

The first one is the S&P500, where we do have a very interesting, yet often underestimated technical structure, which is a correction equality pattern. The current bullish movement is exactly the same as this one from the end of October ad the beginning of November. SP500 reached the ultra-important resistance and it looks like a great place for a bearish comeback. Even if it will not happen here, it can happen a bit higher, so on the gray resistance, which was legitimate support for the last three months of 2018. Our view is still bearish.

DAX is still in the channel down formation and is slowly approaching the upper line of this formation. Along with the dynamic resistance, we do have a horizontal one on the psychological barrier of 11000 points. That seems like a great place to sell. Well, if the price will even get there.

Yes, it is about the indices but we cannot leave currencies aside so now we will analyze the Dollar Index! DXY started this week with a strong breakout of the horizontal support on the 96.2. This breakout activates the sell signal here. Now, we do have a small bullish correction but it seems that this is a normal price action movement of the price testing the broken support as the closest resistance. The sell signal is ON.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire

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